Wilson Parking settles over carpark probe
Wilson Parking New Zealand is giving up 850 car parking spaces in central Wellington following an investigation into alleged anti-competitive behaviour.
The company has agreed to sell leases on three parking buildings in the capital as part of a settlement agreement with the Commerce Commission.
Wilson Parking has also agreed to pay $500,000 toward the commission’s legal costs.
Proceedings were filed in the High Court by the competition watchdog in July 2018 after Wilson Parking acquired the rights to operate the Capital car park in Boulcott Street two years earlier.
The commission claimed the supply of parking in central Wellington area had been substantially lessened because of the acquisition – a potential breach of the Commerce Act.
It had given Wilson Parking the all-clear to acquire the lease for the Plimmer Towers carpark, also on Boulcott Street, in 2015. At the time it noted the company would still face competition in the area as a rival operated the Capital carpark.
However, Wilson Parking bought the lease to operate Capital’s 659 carparks in 2016 and customers started to complain eight months later of price hikes, which led to the commission opening an investigation.
To resolve the legal proceedings, Wilson Parking provided court enforceable undertakings to the commission that it will divest the leases to three sites it operates, including Capital car park.
The settlement agreement does not include any admission of fault on the part of Wilson Parking.
Anna Rawlings, chairwoman of the commission, says: “The divestment of three car parking facilities in the Wellington central area will reintroduce a measure of competition and will mean that customers will have an alternative to Wilson Parking.
“Anti-competitive acquisitions are a priority area for the commission and this is a reminder to businesses that if there is any doubt about the competition effects of a merger, they should seek clearance from us before completing the deal.”
Wilson Parking must sell the leases to purchasers approved by the commission. It must also notify the watchdog of any proposed acquisitions of new car parks in Wellington central for the next five years.
The company says in a statement it co-operated with the commission’s case and will continue working closely over any new carparks in Wellington central, “to ensure a healthy competitive market is maintained”.
